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XRP,
the third-biggest cryptocurrency by market value, was created
and sold initially by San Francisco-based Ripple.
Globally, financial regulators are still assessing how they
should regulate the cryptocurrency industry and digital tokens
like Bitcoin and its rivals. These rules could determine whether
cryptocurrencies make the leap from a niche to a mainstream
asset.
"We are right and will aggressively fight - and win - this
battle in the courts to get clear rules of the road for the
entire industry in the U.S.," Ripple Chief Executive Officer
Brad Garlinghouse said in an emailed statement.
"Instead of providing a clear regulatory framework for crypto in
the U.S., Jay Clayton inexplicably decided to sue Ripple –
leaving the actual legal work to the next Administration," the
statement said.
The SEC could not be immediately reached for a comment.
The statement did not specify the nature of the suit against
Ripple, but a company representative said the S.E.C. had
informed Ripple it planned to file the suit this week.
The Wall Street Journal and Fortune magazine, which reported the
news earlier and quoted from an interview with Garlinghouse,
said the S.E.C. would claim Ripple violated investor-protection
laws when it sold XRP. https://on.wsj.com/3h9JOcz https://bit.ly/2WA7yx0
"The SEC is fundamentally wrong as a matter of law and fact. XRP
is a currency, and does not have to be registered as an
investment contract," the company said.
XRP dropped 5.36% against the dollar in Asian hours on Tuesday.
(Reporting by Alun John; Editing by Rashmi Aich)
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